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Unfair dismissal payouts capped

Workers will face a cut in how much compensation they can win for unfair dismissal at employment tribunals. The Business Secretary Vince Cable is set to also announce he's dropping plans to make it easier to fire under-performing staff.

TUC: 'Govt using unfair dismissal cap as smokescreen'

We are very pleased that Adrian Beecroft's proposal to allow employers to fire employees at whim has been ignored. This would have would have set workers' rights back decades and created huge insecurity in workplaces throughout the country.

However, reducing payouts for unfair dismissals will let bad employers off lightly and deter victims from pursuing genuine cases. This will feel like another slap in the face following the Government's decision to bring in fees for employment tribunals.

– TUC General Secretary Brendan Barber

For all the Government's talk that helping businesses to sack poor performing workers will make them more productive this is little more than a smokescreen to erode hard won rights.

Making it easier for bad employers to get away with misconduct is not the way to kick-start our economy and will not create a single job.